Can the IMF Save the World?

By: Barry Eichengreen, University of California, Berkeley

Only if the IMF comes up with some new ideas.

Germany's nuclear paranoia

By: Wolfgang Münchau

In my latest FT Deutschland column, I argue that the German Social Democrats are in a right mess over nuclear. This entry contains an English synopsis, and the original column in German.

German finance minister rejects EU proposals

Steinbruck wants to wait until well into next year to make a decision on further stimulus; Spain raises the stimulus by another €11bn; ECB to cut rates by at least 50bp next week; credit growth is fall in the euro area, but is still positive in all categories; in the US, meanwhile, there is a growing concern that Obama’s top economic advisers might get in each others way.

Is Germany boycotting a European response?

Another disastrous Franco-German summit brings no results, as Merkel rejects a European fiscal response out of hand; Obama plans a $700m stimulus and appoints Christina Romer as chairman of the Council of Economic Advisers; the new Austrian government is stimulating to the tune of 1% of GDP; Latvia, meanwhile, has imprisoned an academic for saying that the country may not be able to repay its foreign currency loans.

The world is preparing for the biggest stimulus in history

Obama plans massive stimulus after inauguration; Brown to cut VAT today; and France and Germany disagree over what to do; Germany prepares for a tax cut – in 2010; Citibank was on the ropes over the weekend, and expected to receive a bailout from the US government; the French Socialists, meanwhile, have taken their political chaos to a new level as Segolene Royal accuses Martin Aubry of election fraud, after narrowly losing the party leadership contest.

The bloodbath continues

Equity continue to slump, risk aversion reaches new extreme hights, and oil falls below $50; high unemployment claims and downbeat statements by the auto companies spook markets; the Fed has quietely shifted away from targeting the Fed’s fund rate to a policy of quantative easing; Socialists face run-off for the leadership between Royal and Aubry; Iceland, meanwhile, secure an IMF rescue package, while Turkey is still playing hard to get.

Stimulus beckons as financial crisis deteriorates

EU Commission plans €130bn co-ordinated stimulus with a decision due at December EU summit; Austria’s central bank governors calls on Germany to raise stimulus; drastic cut in production at BASF, Renault and PSA Peugot Citroën is a bad omen for industrial production; Ireland is about to launch a multi-billion recapitalisation plan; global stock markets, meanwhile, crashed again, with the Dow Jones now under 8000, and European CDS indices at new record levels.